REG - Power Metal - Molopo Farms- Drill Programme & Geophysics Update

Power Metal ResourcesAnnouncement

23/08/2022 07:00

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RNS Number : 8403W  Power Metal Resources PLC  23 August 2022

23 August 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms- Drill Programme and Geophysics Update

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update in relation to the Molopo Farms Complex Project ("Molopo
Farms" or the "Project") targeting a large scale nickel-copper-platinum group
element ("PGE") discovery in southwestern Botswana.

On 16 August 2022 the Company announced an update highlighting the
identification of a large electromagnetic ("EM") conductor, the edge of which,
had been intersected by previous diamond core drillhole KKME 1-6 ("K1-6"), at
similar stratigraphic levels to a broad nickel sulphide mineralised interval.
As announced, drill testing this conductor is to be the focus of the upcoming
expedited diamond drill programme. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-drill-target-k1-6/15586161
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-drill-target-k1-6/15586161)

 

HIGHLIGHTS

 

§ Preparations for the first Power Metal managed and operated diamond drill
programme at Molopo Farms are advancing at pace and the commencement date for
drilling is expected to be announced shortly.

 

§ The drilling will target the core of the new conductor, immediately south
of K1-6, with multiple drillholes planned of varying positions in order to
maximise the discovery potential of the programme.

 

§ Precision drill hole targeting work at K1-6 is also underway, given the
size of the conductor the first two holes are expected to be located
approximately 500m and 1,000m to the south of original hole K1-6.

 

§ The programme is being designed to ensure expeditious core analysis to
include: geologists on site to conduct continuous core inspection and logging,
identification of visible sulphides, selection of core samples for assay
testing and the arrangement where appropriate of expedited laboratory assays
to minimise turnaround time.

 

§ Two additional high-priority targets located southwest of K1-6 have been
selected for moving loop electro-magnetic ("MLEM") surveys, to provide further
targets for planned diamond drilling.

 

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:

"It is encouraging to see the interest in Molopo Farms shown by shareholders
and investors.  We share the excitement this Project brings, and the K1-6
conductor is considered by our technical team to be a very compelling drill
target.

We are seeking commencement of drilling as soon as possible and making
expedited final preparations for this.  There will be further announcements
to follow in this regard.

Expanding the geophysics programme to cover two new targets demonstrates the
size and scale of the Molopo Farms opportunity.

As this work progresses, in parallel, we continue to engage with third parties
that have expressed an interest in Molopo Farms and the high-impact
exploration work we are undertaking.

The level of interest in the Project is notable, demonstrating we believe not
only the Project's geological potential, but also its geographic location,
Botswana, which is a secure, supportive and positive operating environment for
resource exploration and development."

FURTHER INFORMATION

 

Drill Programme Planning

 

§ Following detailed review of the geophysical data and in consultation with
Power Metal's in-country technical team, the Company is planning to drill
multiple holes targeting the southerly dipping conductor at K1-6, the core of
which has never been drilled. The conductor is highlighted in Figure 2 and 3
in the link below:

https://www.powermetalresources.com/molopo-farms-complex-rns/
(https://www.powermetalresources.com/molopo-farms-complex-rns/)

 

§ The first two drill holes are planned to be located approximately 500m and
1,000m south of previous diamond drillhole K1-6.  The drill holes will be
drilled towards the north at a ~70 degree angle in order to best intersect the
southerly dipping conductor.

 

§ Spectral Geophysics are undertaking inversions of the MLEM data collected
to date as well as high-resolution ground-magnetic surveys over drillholes
K1-6 and KKME 1-14 ("K1-14"), to enable further refinement of the target areas
prior to selecting final drillhole parameters (precise collar location, dip
and azimuth).

 

§ The Company is finalising all preparations for the upcoming programme,
including drill contract finalisation and the engagement of drill rig
geologists, field technicians, core cutting personnel and general labourers.
The senior project geologist from MSA Consulting Inc. engaged to help manage
the Project in-country on behalf of Power, and who has extensive working
knowledge of the Project, will be responsible for day-to-day oversight while
drilling is ongoing.

 

Expansion of Geophysics over Additional Targets

 

§ The Company has also engaged Spectral Geophysics to undertake additional
MLEM surveys over two additional targets K1-3 and K2-3, located approximately
30km and 60km southwest of target K1-6 and within prospecting licence ("PL")
310/2016.

 

§ The additional targets are considered by the Power Metal technical team to
hold significant potential prospectivity for nickel, copper and platinum group
element mineralisation and the MLEM surveys will assist in the development of
additional drill targets in those locations.

 

§ A location plan map of the Project highlighting the location of all
geophysical target areas can be found at the link below:

https://www.powermetalresources.com/molopo-farms-complex-airborne-em-target-map/
(https://www.powermetalresources.com/molopo-farms-complex-airborne-em-target-map/)

PROJECT BACKGROUND AND OWNERSHIP

 

Power Metal currently has a current circa 53% effective economic interest in
Molopo, held through a direct project interest and a shareholding in partner
Kalahari Key Mineral Exploration (Pty) Ltd ("KKME").  On 18 May 2022 Power
Metal announced a conditional transaction that would see its interest in
Molopo Farms increasing to 87.71% (the "Transaction").  The announcement may
be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701
(https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701)

 

As part of the Transaction, Power Metal will become the Project operator and
in advance of completion the Company is working with the team at KKME to
maintain momentum with regard to Project exploration.

 

Work streams are also in process to secure Botswana regulatory approvals
enabling the Transaction to complete.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/) or contact:

 Power Metal Resources PLC
 Paul Johnson (Chief Executive Officer)                                          +44 (0) 7766 465 617

 SP Angel Corporate Finance (Nomad and Joint Broker)
 Ewan Leggat/Charlie Bouverat                                                    +44 (0) 20 3470 0470

 SI Capital Limited (Joint Broker)
 Nick Emerson                                                                    +44 (0) 1483 413 500

 First Equity Limited (Joint Broker)
 David Cockbill/Jason Robertson                                                  +44 (0) 20 7330 1883

 

NOTES TO EDITORS

Power Metal Resources PLC - Background

Power Metal Resources PLC (LON:POW) is an AIM listed metals exploration
company which finances and manages global resource projects and is seeking
large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale
potential across a global portfolio including precious, base and strategic
metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage
prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint
ventures until a project becomes ready for disposal through outright sale or
separate listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends or in-specie distributions of assets.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

 Project                Location  Current          Work Completed or Underway                                                    Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Ground exploration  programme underway at 3 properties.  Continuing data      Results from ground exploration including spectrometer analysis, sampling and
                                                   analysis across the property portfolio.                                       mapping.
 Authier North Lithium  Canada    Earn-in to 100%  Property Evaluation Report completed.                                         Update covering exploration plans for target areas identified during the
                                                                                                                                 Evaluation.
 Molopo Farms           Botswana  53%(#)           Final preparations for the launch of K1-6 conductor target drilling and MLEM  Drilling contract signature and commencement of K1-6 drill programme. Results
                                                   surveys over K1-3 and K2-3.                                                   from MLEM surveys.
 Tati Project           Botswana  100%             RC drilling underway and previously sampling of mine dumps complete.          Review of mine dumps sampling, and processing potential.  Results from RC
                                                                                                                                 drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required.  These interests are summarised in the table below:

 Company                          Status/Operations                                                           Link
 First Class Metals PLC           Investment - POW 28.19%                                                     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 First Development Resources PLC  Planned IPO - POW 62.12%                                                    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

                                  Exploration in Western Australia and the Northern Territory of Australia
 Golden Metal Resources PLC       Planned IPO - POW 83.13%                                                    www.goldenmetalresources.com (http://www.goldenmetalresources.com)

                                  Exploration and development in Nevada, USA
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com)
                                  announced 8.7.22)

                                  Exploration in Botswana
 New Ballarat Gold PLC            Planned IPO - POW 49.9%                                                     A new website is currently in development which will be found at

                                                                           www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .
                                  Exploration in the Victoria Goldfields of Australia

                                                                                                              In the interim further information in respect of NBGC can be found at:

                                                                                                              https://www.powermetalresources.com/project/victoria-goldfields/
                                                                                                              (https://www.powermetalresources.com/project/victoria-goldfields/) .

 

 

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